New for 2017
For 2017, investors may contribute up to $5,500 into their TFSA. For those who have not contributed to TFSAs in the past, eligible investors may contribute up to $52,000.
Annual TFSA contribution limit:
- $5,000 for 2009, 2010, 2011 and 2012
- $5,500 for 2013, 2014, 2016 and 2017
- $10,000 for 2015
If you have any questions about TFSAs, please contact our Investment Funds Advisors at 1-800-661-6141.
Individuals aged 18 and older can contribute to a Tax-Free Savings Account (TFSA).
Some highlights of TFSA accounts:
- Contributions to a TFSA will not be deductible for income tax purposes, but investment income, including capital gains, earned in a TFSA will not be taxed, even when withdrawn.
- Unused TFSA contribution room can be carried forward to future years.
- You can withdraw funds from the TFSA at any time, for any purpose.
- The amount withdrawn can be put back in the TFSA at a later date without reducing your contribution room.
- Neither income earned in a TFSA nor withdrawals will affect your eligibility for federal income-tested benefits and credits.
- Contributions to a spouse’s TFSA will be allowed, and TFSA assets can be transferred to a spouse upon death.
Please note that while both TFSAs and RRSPs are tax-advantaged investment vehicles, there are important differences:
- Contributions to an RRSP are deductible and reduce your income for tax purposes. In contrast, your TFSA savings will not be deductible.
- Withdrawals from an RRSP are added to your income and taxed at current rates. Your TFSA withdrawals and growth within your account will be tax-free.
For a complete listing of forms and applications for TFSAs, click here.
If you have any questions about TFSAs, please contact our Investment Funds Centre at 1-800-661-6141.